A Consumption Model of Foreign Visitors in Japan: Identifying the Beneficiary Area of International Flights

Abstract

This paper presents a model for the consumption patterns of foreign visitors in Japan. My study more specifically uses our model to analyze data about the passenger flow of Chinese tourists to Japan. I verified the accuracy of the model, using the total number of foreign visitors in each prefecture as listed in Japanese statistics about travel accommodations. The model identifies the beneficiary area of a Chinese budget airline that services an international airport, exploring this question through the impact of the airline’s service on tourist consumption in three metropolitan regions. My study evidences that 1) tourists arriving at Narita Airport or Haneda Airport on Chinese budget airlines primarily consume in the Tokyo metropolitan region and 2) tourists arriving at Kansai Airport or Chubu Airport on Chinese budget airlines primarily consume in the Osaka metropolitan region, the central region, and the Tokyo metropolitan region.